HELLO POLLY COPYWRITERS LIMITED

Executive Summary

Hello Polly Copywriters Limited shows signs of financial distress with negative net assets and working capital deficits. Immediate action on cash flow management and capital injection is essential to restore solvency and ensure business continuity.

HELLO POLLY COPYWRITERS LIMITED - Analysis Report

Company Number: 13953227

Analysis Date: 2025-07-29 15:08 UTC

Financial Health Assessment of Hello Polly Copywriters Limited (as of 31 March 2024)

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1. Financial Health Score: D

Explanation:
Hello Polly Copywriters Limited shows clear signs of financial distress. The company has persistent negative net assets and net current assets, indicating insolvency on a balance sheet basis. While it remains active and filing on time, the financial position reveals ongoing liquidity and capital structure challenges that need urgent management attention.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	333	Very low liquidity; cash and debtors minimal.
Cash on Hand	244	Insufficient cash buffer for liabilities.
Debtors	89	Reduced dramatically from prior year, possible collection issues or reduced sales.
Current Liabilities	2,729	Short-term debts significantly exceed assets.
Net Current Assets	-2,396	Negative working capital; "symptom of distress" in ability to meet short-term obligations.
Net Assets (Shareholders' Funds)	-1,840	Negative equity; company is insolvent on a balance sheet basis.
Tangible Fixed Assets	688	Small asset base; depreciation reducing asset value.
Retained Earnings	-1,842	Accumulated losses eroding company capital.
Share Capital	2	Minimal equity injected by shareholders.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity Crisis: The company’s current assets (£333) are drastically lower than its current liabilities (£2,729), resulting in negative net current assets of £-2,396. This is akin to a patient with dangerously low blood pressure—there is insufficient "cash flow" to keep daily operations healthy and solvent.

• Negative Equity: Net assets stand at £-1,840, reflecting that liabilities exceed total assets. The company’s "financial heart" is weak, with shareholders' funds in deficit due to accumulated losses. This is a critical sign indicating insolvency risk if not addressed.

• Declining Asset Base: Tangible fixed assets have reduced from £1,008 to £688, showing wear and tear or disposals without replacement, weakening the company’s asset foundation.

• Reduced Receivables: Debtors have shrunk significantly from £631 to £89, which could indicate either improved collection or a decline in sales. The low cash balance (£244) further suggests tight operating cash flows.

• No Employees: Reported zero employees, so the business is possibly owner-operated or contracting out work. This might limit growth capacity but also keeps fixed costs low.

• No Audit Requirement: The company qualifies for audit exemption under small company rules, but this means limited external financial scrutiny which might hide deeper operational issues.

• Ownership & Control: Two individuals each control 25-50% of shares and voting rights, with one director actively managing. This concentrated control can facilitate swift decision-making but may also limit access to external capital.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Urgent Cash Flow Management: Improve cash inflows by accelerating debtor collections or securing short-term financing to cover liabilities. Consider negotiating extended payment terms with creditors to ease liquidity constraints.

• Capital Injection: Seek additional equity funding from existing shareholders or external investors to restore positive net assets and strengthen the balance sheet. This "financial CPR" is essential to revive the company’s solvency.

• Cost Control: Review all expenses, especially fixed costs and any non-essential spending, to preserve cash and avoid further losses.

• Business Development: Enhance marketing and sales strategies to boost turnover and rebuild debtor balances, supporting healthier working capital.

• Consider Professional Advice: Engage a financial advisor or turnaround specialist to assist with restructuring plans and explore options including refinancing or strategic partnerships.

• Regular Financial Monitoring: Implement tighter financial controls and frequent cash flow forecasting to catch symptoms of distress early and respond proactively.

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Summary

Hello Polly Copywriters Limited is currently experiencing significant financial distress characterized by negative working capital and shareholders' funds. Without swift intervention to improve liquidity and capital structure, the company risks insolvency. Focused efforts on cash flow management, capital injection, and cost control are critical to stabilise and rebuild financial health.